Rival malls on Yas Island on collision course

Yas Mall and Deerfields Town Square are on course to go head-to-head for shoppers when the two malls join a wave of new openings in the capital over the next two years.

Deerfields Town Square is positioning itself as a community mall. Ravindranath K / The National
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Yas Mall and Deerfields Town Square are on course to go head-to-head for shoppers when the two malls join a wave of new openings in the capital over the next two years.

The two malls are being marketed as completely different offerings but, just minutes from each other by car, they will compete for the thousands of residents in the area.

Deerfields Town Square is in the Al Bahia district right next door to Yas Island where Yas Mall is located.

Both malls have leased out more than 50 per cent of their stores ahead of opening.

David Macadam, the head of retail at Jones Lang LaSalle, the property specialist leasing Deerfields, concedes that Yas Mall will divert some shoppers away from Deerfields but says residents will want the ease of visiting a community mall.

"I'm sure there will be some [drawing off of customers]," he said. "But Yas has its own target, which is tourist buyers."

Yas Mall, which is due to open in December next year and is already 60 per cent leased, is being built at a cost of US$2 billion (Dh7.34bn) and is to be the second-biggest mall in the UAE, behind Dubai Mall.

It is in talks with retailers to lease 235,000 square metres, while Deerfields is offering 80,000 sq metres.

Last October, five of the biggest retailers in the region - MH Alshaya, Landmark Group, Dubai Holding Group, Royal Sporting House and Liwa Trading - agreed to add brands to Yas Mall.

Fred Douglas, the head of leasing at Aldar, says the mall is on track for completion, despite a number of major changes at the developer.

In December, Aldar sold some of its prized assets, including the Emporium at Central Market, to the Abu Dhabi Government. The company is also in high-profile talks to merge with fellow developer Sorouh Real Estate. "We are going at a million miles an hour," said Mr Douglas. "What [has been] in the press has not affected the retail portfolio. It's on target for next year."

Yas and Deerfields, which is set to open in December this year, will have entertainment centres and cinemas, while Landmark Group, with its brands such as Emax, Splash, Home Centre and Babyshop, has signed up to each mall.

"Of course [Yas] is big competition," said Banu Tas, the general manager for Deerfields. "But I think it's positive because we see Yas as a destination mall. We are a community mall. We are not targeting much of the tourists. Both malls are in their own category and will be successful."

Nearly 40 per cent of Deerfields' leasable area has been allocated for retail, with Carrefour and Centrepoint as anchor stores.

The area around Deerfields and Yas Mall, including Al Bahia, Al Raha Beach, Khalifa City, Mussaffah and Al Reef, is expected to house 60,000 to 90,000 residents by the end of this year.

The catchment area is predominantly made up of high-income Emirati families, according to Jones Lang LaSalle.

Mr Macadam says residents in the area have been crying out for a community mall, because currently they have to travel 40 minutes to Ibn Battuta or drive into Abu Dhabi city.

"Right now they are driving all the way to Ibn Battuta to go grocery shopping and go to a movie," he said.